The Japanese government plans to promote the digital securitization of local bonds and will submit related legislation in 2026.

According to ChainCatcher news, as reported by CoinDesk citing Nikkei, the Japanese government has established a policy to promote the digital securitization (Security Token) of local bonds issued by local governments. The government plans to submit relevant legislation to the regular Diet in 2026 and will determine specific countermeasures this month based on the needs of local governments. Experts point out that digital local bonds based on blockchain technology can achieve rapid issuance and settlement without intermediaries, and can grasp investor information in real time. This model can combine various forms of returns, such as monetary returns, non-monetary benefits, and social contributions, and is expected to serve as a direct financing tool for individuals.